debtor in possession

(redirected from Debtor-in-Possession)
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debtor in possession

n. in bankruptcy proceedings when a debtor has filed for the right to submit a plan for reorganization or refinancing under Chapter 11, and the debtor is allowed to continue to manage his/her/its business without an appointed trustee, that debtor is called a "debtor in possession." (See: bankruptcy)

References in periodicals archive ?
Lawyers for the company and the unsecured creditors committee said in a court hearing on May 7 that they had reached an agreement to amend some of the loan terms, allowing the debtor-in-possession funding to be approved.
Concurrently with its chapter 11 filing, TerreStar Networks has entered into an agreement with EchoStar Corporation, its largest secured creditor, to provide the Company with a $75 million debtor-in-possession financing facility.
To help support its business during the Chapter 11 proceedings, SMART Papers has obtained debtor-in-possession (DIP) financing from Wachovia Capital Finance, Ft.
9bn debtor-in-possession financing will reportedly save the airline USD30m annually.
The company already received from its lenders a commitment of up to $15 million in debtor-in-possession financing, which, when combined with revenue from operations, is expected to support the company through the Chapter 11 process.
According to the commitment letter, eligible inventory will be based on "standards at least as favorable" as Kmart's current debtor-in-possession facility.
will provide the companies with $5 million in debtor-in-possession financing.
The company said it plans to continue operating as debtor-in-possession during its reorganization.
has agreed with its lenders to amend (the "Amendment") the company's debtor-in-possession financing (the "DIP Financing") to extend the maturity until Sept.
If the company records are in adequate order, the bankruptcy trustee or debtor-in-possession can make this filing without omitting any creditors; these creditors are then notified that the company has filed bankruptcy.
UAL Corp, the parent company of US airline United Airlines, has received approval to amend and extend its debtor-in-possession financing to 30 September 2005.
The net cash proceeds of the sale will be used to reduce outstanding borrowings under Acme's debtor-in-possession financing facility.